The Supreme Court on April 1 held that authorities cannot deny benefits under the Central Pay Commission by adding conditions not found in its recommendations.
A bench of Justice Pankaj Mithal and Justice S.V.N. Bhatti heard the Union of India’s appeal. The appeal arose from a Delhi High Court judgment in favour of employees of the Border Roads Organisation.
Pay Commission Benefits Denied by Extra Conditions
The respondents had joined the Border Roads Organisation in subordinate engineering cadres. Later, after a cadre merger, the authorities redesignated them as Junior Engineers.
They then completed four years of continuous service in Level 8 with Grade Pay of ₹4,800. As a result, they became eligible for Non-Functional Upgradation (NFU) to Level 9 with Grade Pay of ₹5,400 under the Seventh Central Pay Commission recommendations.
However, the Government denied the benefit. It argued that only direct recruits to Level 8 could get NFU. The respondents, in turn, opposed this stand. They pointed out that the Seventh Pay Commission had imposed no such restriction. It had also not limited the benefit to direct recruits.
Why the Court Rejected the Union’s Stand
The Delhi High Court accepted the respondents’ plea. It therefore directed the authorities to extend Level 9 benefits to them. The Union of India then challenged that ruling before the Supreme Court.
NFU Benefit Under the Seventh Pay Commission
The Supreme Court, however, dismissed the appeal. Justice S.V.N. Bhatti authored the judgment.
The Court held that the Government had wrongly denied NFU by adding a fresh condition. In particular, it found that the restriction to direct recruits did not appear in the Seventh Pay Commission recommendations.
“The denial of NFU on the ground that the Writ Petitioners have not joined the service with grade pay of Rs. 4,800/-, thus, introducing entry-level into the subject paragraphs of Seventh Central Pay Recommendations, may amount to adding additional conditions for extending the benefit of NFU,” the Court observed.
The Court also said that a plain reading of the recommendations supported the respondents’ claim. According to the bench, a Junior Engineer becomes entitled to NFU after four years in Level 8. This entitlement, however, remains subject to seniority-cum-suitability.
“The requirement appears to be from the plain reading that upon completion of four years of service in Level 8 and on the seniority-cum-suitability, a Junior Engineer is entitled to NFU. The insistence on the option with an entry-level Junior Grade at Rs. 4,800/- would deny a benefit recommended by the Seventh Central Pay Commission to the Writ Petitioners,” the Court added.
Delhi High Court Order Upheld by Supreme Court
The Court held that the denial lacked valid reasons. Therefore, it found no reason to interfere with the Delhi High Court’s order.
“The denial is not for valid reasons. Therefore, we see no reason to interfere with the Order under appeal. The Civil Appeal stands dismissed,” the Court ordered.
Accordingly, the Supreme Court dismissed the appeal.
Cause Title: Union of India & Others v. Sunil Kumar Rai & Others
Citation: 2026 INSC 323
